Soft Drinks in Algeria
Euromonitor International's Soft Drinks in Algeria market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
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Tables: 23 | Publication date: Oct 2006
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Executive summary
Soft drinks performs well over the review period
Soft drinks performed well over the review period, culminating in a 2004-2005 retail value growth of 21% and retail volume growth of 19%. Value growth exceeded volume growth due to the high prices of carbonates and other soft drinks, coupled with the fact that Algerian consumers traded up to premium products. The unit price growth was a result of the launch of new brands, but mainly brand extensions, targeting different income groups. New bottle shapes and flavours were the chief developments, with a focus on local favourite tastes and flavours. Intensive advertising and promotion also stimulated sales of newly launched products and established products in carbonates, bottled water and fruit/vegetable juice. All these factors contributed significantly towards raising demand for soft drinks, by raising awareness of these products and ultimately boosting sales.
Carbonates leads value sales of soft drinks
Value sales of carbonates continued to flourish over the review period with a value of DZD23 billion in 2005, an increase of 22% over the previous year. Volume sales in 2005 reached 515 million litres, registering a volume growth of 18% over 2004. This can partly be explained by the increase in sales of other local players’ brands and increasing imports from overseas. Significant marketing efforts were made to stimulate sales, and were also a factor in the positive volume growth of carbonates. Improved purchasing power manifested itself in higher spending habits amongst Algerian consumers. In addition, there were innovations in the form of increased availability of a larger selection of flavours through multinational brands, mainly Coca-Cola Algeria and ABC Atlas Bottling Corp.
Bottled water achieves the most dynamic growth
Bottled water experienced dynamic growth over the review period, retaining the second largest volume sales of total soft drinks sales in 2005, achieving 2004-2005 volume growth of 20%. Bottled water was promoted by leading manufacturers as the solution to different health problems such as obesity, kidney stones, digestive problems and constipation. As standards of living improve for Algerians, they are becoming more aware of health issues. Almost everyone from middle-class and high class families, from infants to elders, consume bottled water as it is perceived as natural and pure. Volume growth was also greatly stimulated by the high level of investment, increasing the availability of products and promotions along with price reductions.
Rising sales for fruit/vegetable juice
Fruit/vegetable juice registered encouraging growth over the review period, but sales remain overshadowed by demand for bottled water. Sales are also constrained mainly due to the poor supplies of citrus fruits, as well as high import prices. In addition, fruit/vegetable juice is still weak in the Algerian market as it is too expensive to manufacture and store.
The shortfall in local products was substituted by imported products, which met large demand as consumers experienced a wide range of products with different flavours. Yet, this demand was not of the same magnitude as before. High prices of fruit/vegetable juice pushed consumers into opting to buy fruit and make their own freshly squeezed juice. Moreover, squeezing fruit at home allows consumers to determine the quantity and juice concentration, which is less feasible with branded juice.
Table of contents
SOFT DRINKS IN ALGERIA : MARKET INSIGHT
1. EXECUTIVE SUMMARY
2. TOTAL SOFT DRINKS SALES
2.1 Market Performance
Table 1 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2000-2005
Table 2 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2000-2005
Table 3 Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2000-2005
Table 4 Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2000-2005
Table 5 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Sector: Volume 2005
Table 6 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Sector: % Volume 2005
Table 7 Off-trade vs On-trade Sales of Soft Drinks by Sector: Value 2005
Table 8 Off-trade vs On-trade Sales of Soft Drinks by Sector: % Value 2005
Table 9 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2005-2010
Table 10 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2005-2010
Table 11 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2005-2010
Table 12 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2005-2010
2.2 Company Profile: Hamoud Boualem Spa
3. OFF-TRADE SOFT DRINKS SALES
3.1 Market Performance
Table 13 Off-trade Sales of Soft Drinks (as sold) by Sector: Volume 2000-2005
Table 14 Off-trade Sales of Soft Drinks (as sold) by Sector: % Volume Growth 2000-2005
Table 15 Off-trade Sales of Soft Drinks by Sector: Value 2000-2005
Table 16 Off-trade Sales of Soft Drinks by Sector: % Value Growth 2000-2005
3.2 Competitive Environment
Table 17 Company Shares of Off-trade Soft Drinks by Value 2001-2005
Table 18 Brand Shares of Off-trade Soft Drinks by Value 2002-2005
3.3 Off-Trade Distribution
Table 19 Off-trade Sales of Soft Drinks by Sector and Distribution Format: % Analysis 2005
3.4 Retailer Activity and Private Label Trends
3.5 Forecast Market Performance
Table 20 Forecast Off-trade Sales of Soft Drinks (as sold) by Sector: Volume 2005-2010
Table 21 Forecast Off-trade Sales of Soft Drinks (as sold) by Sector: % Volume Growth 2005-2010
Table 22 Forecast Off-trade Sales of Soft Drinks by Sector: Value 2005-2010
Table 23 Forecast Off-trade Sales of Soft Drinks by Sector: % Value Growth 2005-2010
4. DEFINITIONS